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Five new Edinburgh nursery buildings are in limbo after the firm hired to complete them collapsed into administration.

Almost 150 workers at Central Building Contractors have been laid off after the company failed to meet “cash flow challenges amplified by the COVID19 pandemic,” according to administrators KPMG.

The firm was hired to complete one new build early years centre and four extensions to existing establishments across the capital to meet the Scottish Government’s enhanced early learning and childcare (ELC) provision - which was due to near double from 600 hours to 1,140 hours by August 2020.

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But five of the facilities are not yet finished, meaning the incomplete shells at Craigentinny, Granton, Nether Currie, St John Vianney’s and St Mark’s RC primary schools are set to lie empty until a replacement contractor can be found.

The Scottish Government has since delayed the increased ELC proposals in light of the coronavirus outbreak.

Council chiefs say they are now exploring options to complete the projects, but no decision will be made until administrators have finished their work with the firm.

Posting on Facebook, Labour councillor Scott Arthur wrote: “Bad news when we didn't need it - The company building the new nursery on Oxgangs Rd North at St Mark's RC PS has went bust.

“I am sure everyone wishes that staff in the company well, but this is also a setback for the area and the school community.”

The Capital is currently home to 17 early years centres, with the Nether Currie facility set to be the 18th.

The other temporarily halted projects were extensions of current ELC facilities.

Council Leader Adam McVey said: “We are aware the contractor delivering five new early years projects, due to open later this year, has entered administration. The five buildings formed part of our wide-ranging plans to meet the 1140 hours of funded early years provision by August 2020.”

He added: “The deadline for implementing 1140 hours has now been extended due to Covid-19 and we are in the process of assessing the full implications. When we receive further updates from the administrators we will consider all options to ensure these necessary projects are completed.”